Walt Disney Company (the) · NYSE:DIS
Walt Disney Company (the) — Q3 2024 Earnings Presentation
34 slides from Walt Disney Company (the)'s earnings presentation, Aug 7, 2024
Slide 1: Q3'24 Earnings Presentation
The Qaur Dfenep Comp y Q3'24 EARNINGS P SENTATION AUGUST 7, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our expectations, beliefs, plans, financial prospects, trends or outlook and guida
Slide 3: Our performance in Q3 demonstrates the strength of Disney's portfolio
Our performance in Q3 demonstrates the strength of Disney’s complementary and balanced portfolio What makes Disney distinct is the way our individual businesses work seamlessly together to generate value WATCH Catch must-see films in theaters and series on our linear networks PURCHASE Shop Disney pr
Slide 4: We continue to build franchises that fuel our ecosystem
We continue to build franchises that fuel our ecosystem... Inside Out 2 has become the highest- grossing animated film ever, with over $1.5 billion at the global box office!) Inside Out (2015) drove over 1.3 mi sign-ups?) and generated over 100 million views of the original film globally since the f
Slide 5: We continue to build franchises that fuel our ecosystem (Moana)
We continue to build franchises that fuel our ecosystem... Z co) Moana 2 coming November 2024 and 1 . y Moana (Live Action) coming 2026 /o : a I y “= 4 CZ a wa if > Moana 2 had the biggest animated trailer launch in / | a | fa \ Disney history with nearly 200 million views in 24 hours and dedicated
Slide 6: Adding to our existing collection of iconic IP
... Adding to our existing collection of iconic IP, which we are able to monetize across consumer touchpoints for decades. Examples include: Diop: PIXAR (AVENGERS =STAR. WARS: AVATAR Toy Story 5 coming 2026 (2) Based on views. ©Di $3.3 billion at the global box office across 5 films, with Toy Story
Slide 7: On board our newest Disney cruise ships, we immerse guests in stories
On board our newest Disney cruise ships, we immerse guests in their favorite Disney stories with a blend of innovation and technology Launched 2022 Criss, Diep ENDELLe sear nh OUR, NG ieee’ FROZEN or tous December 2024 SKIPPER I A i | ane GH TALE Gg initia surenHero = /\\@ANA ha cal Fiscal 2025 ‘Die
Slide 8: Our multi-platform approach delivers high-quality entertainment
Our multi-platform approach allows us to seamlessly deliver high-quality entertainment to consumers across a range of demographics * Our success is based on our ability to deliver: * Best-in-class content — we offer the best IP across brands and franchises, general entertainment and live sports ¢ Un
Slide 9: Combined DTC streaming businesses were profitable in Q3
Our combined DTC streaming businesses were profitable in Q3 ahead of our guidance, and we remain on track for that profitabi Quarterly Results (in Billions) ity to improve in Q4 YTD Results (in Billions) Operating Income (Loss)'?) Q4'22 Qt'23 Q2'23 Q3'23 Q4'23 qu'24 ($1.5) @ Peak losses Revenue $4.9
Slide 10: Sports is an important value creator for Disney
Sports is an important value creator for Disney, and we remain focused on ESPN’s evolution into the preeminent digital sports platform Key Ratings Wins ESPN had the most-watched Q3 in e@ primetime in a decade MB® orrong cdutts 18-490) NBA Finals had its highest audience share in 20+ years, i averagi
Slide 11: Experiences segment outlook despite economic uncertainty
At our Experiences segment, despite recent economic uncertainty that is impacting consumers, we remain confident about the long-term opportunities before us Experiences continues to significantly out-perform Our recent investments in technology and data analytics enable pre-pandemic levels, with bot
Slide 12: We continue to expand our U.S. and international offerings
We continue to expand our U.S. and international offerings, both on land and at sea, with new experiences and attractions that will increase capacity * We operate resorts on three continents, and our cruise line gives us geographic flexibility * We continue to expand our offerings and are on the pat
Slide 13: Experiences segment continues to make progress
Our Experiences segment continues to make progress on our strategic priority to turbocharge long-term growth * We make strategic investments looking decades ahead to create long-lasting appeal for generations to come * Ongoing investments keep offerings fresh and introduce new experiences that entic
Slide 14: Q3 Results for Fiscal 2024
Q3 Results for Fiscal 2024 (In Billions, Except Per Share Amounts) $22.3 $23.2 $4.2 $1.43 $1.39 $3.6 $3.1 $1.03 Q3'23 Q3'24 ($0.1) Q3'23 Q3'24 Q3'23 Q3'24 ($0.25) Q3'23 Q3'24 Q3'23 Q3'24 Revenues Income (Loss) Before Total Segment Diluted EPS Diluted EPS Income Taxes Operating Income!) Excluding Cer
Slide 15: Recent Business Highlights
Ls y CY Recent Business Highlights Inside Out 2 is now the highest-grossing animated film ever and among the top 10 biggest movies of all time. |t also fueled Inside Out (2015) streaming viewership on Disney+ Combined Star+ into the Disney+ app in Latin America, bringing general entertainment and ES
Slide 16: Q3 Entertainment Results
Q3 Entertainment Results {In Billions) Linear Networks Revenues * Domestic operating income was comparable to the prior year due to: Linear Networks $5.8 + Adecline in advertising revenue attributable to a decrease in impressions, Direct-to-Consumer partially offset by higher rates CSLO « Lower affi
Slide 17: Q3 Disney+ Core Subscribers & ARPU
Q3 Disney+ Core Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USD) Q3’24 vs. Pach . P . isnep+ Domestic Subscribers 323. | qz2a.~=S Disney+ Domestic!) 46.0 bul Slt +8.8 40.8 * Subscribers increased 0.8 million vs. the prior quarter * ARPU
Slide 18: Q3 Hulu Subscribers & ARPU
Q3 Hulu Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USD) h ] . Q3’24 vs. UIU subscribers aA ee ron 50.2 51.1 42.8 40.9 dota Hulu = +01 (0.1) LiveTV + SVOD Sena 42.7 40.9 03'23 a2'24 03'24 SVOD Only ARPU $12.39 $11.84 $12.73 +$0.34 +$0.89
Slide 19: Q3 Sports Results
ESPN Domestic ESPN International Star India ESPN Domestic ESPN International Star India $3.7 Q3'23 Revenues $3.9 Q3'24 Q3 Sports Results Operating Income (Loss)") $1.4 ($0.0) 03'23 ($0.2) $11 $0.0 Q3'24 ($0.3) {In Billions) ESPN Domestic * Operating income was comparable to the prior year due to: «
Slide 20: Q3 Experiences Results
Domestic Parks & Experiences Int’l Parks & Experiences Consumer Products Domestic Parks & Experiences Int’ Parks & Experiences Consumer Products $5.6 $1.4 Q3'23 Revenues $5.8 Q3 Experiences Results Q3'24 Operating Income Q3'23 $1.3 Q3'24 {In Billions) Domestic Parks & Experiences * Operating income
Slide 21: Appendix
APPENDIX Third Fiscal Quarter Ended June 29, 2024 | 20
Slide 22: Select Upcoming Theatrical Releases
©Dis Select Upcoming Theatrical Releases (Reflects publicly announced planned releases as of August 7, 2024; list is not exhaustive; subject to change) August 16, 2024 Alien: Romulus 20th Century November 1, 2024 A Real Pain Searchlight November 27, 2024 Moana 2 (Animated Sequel) Disney December 6,
Slide 23: Select Upcoming Disney+ and Hulu Releases
Select Upcoming Disney+ and Hulu Releases (Reflects publicly announced planned domestic releases as of August 7, 2024; list is not exhaustive; subject to change) a ce oe August 12 Solar Opposites (Season 5) Hulu Originals Hulu Animation Series August 14 Star Wars: Young Jedi Adventures (Season 2) Lu
Slide 24: Fiscal 2024 Selected Sports Timing Comparisons
Fiscal 2024 — Selected Sports Timing Comparisons (As of August 7, 2024; items are not exhaustive; subject to change) Qi Q2 Q3 a4 No Big 10 renewal in FY24 ICC T20 in FY24 ; (held rights in Q1’23) vs. in Q1’23 New SEC deal begins Net shift of 1 College Football Playoff game, including 2 semi-final ga
Slide 25: Upcoming Parks and Experiences Openings & Events
Upcoming Parks and Experiences Openings & Events (Reflects publicly announced planned openings and events as of August 7, 2024; list is not exhaustive) December 17, 2024 Island Tower at Disney’s Polynesian Villas and Bungalows Walt Disney World Resort December 21, 2024 Disney Treasure (maiden voyage
Slide 26: DTC Product Descriptions and Key Definitions
DTC Product Descriptions and Key Definitions Product offerings In the U.S., Disney+, ESPN+ and Hulu SVOD Only are each offered as a standalone service or together as part of various multi-product offerings. Hulu Live TV + SVOD includes Disney+ and ESPN+. Disney+ is available in more than 150 countri
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes diluted EPS excluding certain items, DTC streaming businesses operating income (loss), parks & experiences operating income, return on invested capital and total segment operating income, which are important financial measures for the Company, b
Slide 28: Reconciliation of Diluted EPS Excluding Certain Items for Q3
Reconciliation of Diluted EPS Excluding Certain Items for Q3 (In Millions Except EPS) The following table reconciles reported diluted EPS to diluted EPS excluding certain items for the third quarter: (1) (2) (3) (a) (5) (6) 7) Quarter Ended June 29, 2024 As reported Exclude: Income tax reserve adjus
Slide 29: Reconciliation of DTC Streaming Businesses Q4'22-Q3'23
Reconciliation of DTC Streaming Businesses Operating Income (Loss) for Q4'22 — Q3'23 {In Millions) The following tables reconcile the Entertainment and Sports segment operating income (loss) to the DTC streaming businesses operating income (loss): Linear Networks DTC streaming businesses (Direct-to-
Slide 30: Reconciliation of DTC Streaming Businesses Q4'23-Q3'24
Reconciliation of DTC Streaming Businesses Operating Income (Loss) for Q4'23 — Q3'24 {In Millions) The following tables reconcile the Entertainment and Sports segment operating income (loss) to the DTC streaming businesses operating income (loss): Linear Networks DTC streaming businesses (Direct-to-
Slide 31: Reconciliation of DTC Streaming Businesses Nine Months
Reconciliation of DTC Streaming Businesses Operating Income (Loss) for Nine Months Ended {In Millions) The following tables reconcile the Entertainment and Sports segment operating income (loss) to the DTC streaming businesses operating income (loss): Nine Months Ended June 29, 2024 July 1, 2023 DTC
Slide 32: Reconciliation of Parks & Experiences Operating Income
Reconciliation of Parks & Experiences Operating Income (In Millions) The following table reconciles Experiences segment operating income to Parks & Experiences operating income: Year Ended September 30, 2023 Experiences segment operating income $8,954 Subtract: Consumer Products operating income (1,
Slide 33: Reconciliation of Return on Invested Capital for Experiences
Reconciliation of Return on Invested Capital for Experiences (In Millions) The following table reconciles the Experiences segment’s consolidated operating income to return on invested capital: Year Ended September 30, 2023 Experiences segment operating income $8,954 Add (subtract): Taxes (1,880) Ope
Slide 34: Reconciliation of Total Segment Operating Income for Q3
Reconciliation of Total Segment Operating Income for Q3 {In Millions) The following table reconciles income (loss) before income taxes to total segment operating income: Income (loss) before income taxes Add: Corporate and unallocated shared expenses Restructuring and impairment charges Other expens
Walt Disney Company (The) — Q3 2024 Earnings Presentation on 6ix